Financial Advisor Richard Ceffalio is the Subject of Multiple Customer Disputes

• September 17, 2025
• LPL Financial

Richard Allen Ceffalio Jr. (CRD#:2619565) is a registered investment advisor with Newedge Advisors in Arlington Heights, IL.

Broker’s History

He entered the securities industry in 1995 and previously worked with Citicorp Investment Services; A.G. Edwards & Sons, Inc.; Wachovia Securities, LLC; UBS Financial Services, Inc.; Wells Fargo Clearing Services, LLC; and LPL Financial LLC.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the U.S Securities and Exchange Commission (SEC), in July of 2025, Richard Ceffalio became the subject of a customer dispute alleging, “that investments made were unsuitable for the customer’s investment objectives and risk tolerance. Time period: October 2022 – May 2024.” The damage amount being requested is $5,000,000.00 and the customer dispute is still pending.

In addition, Richard Ceffalio has been the subject of seven other SEC AdvisorInfo disclosures:

• June 2025—“ Claimant alleges selling away, unauthorized, improper transfers, improper borrowing, breach of fiduciary duty, breach of duty of good faith and fair dealing, negligence and gross negligence, breach of the Illinois Negligent misrepresentation in connection with investments made. Activity period April 2020 through June of 2025.” The damage amount being requested is $3,000,000.00 and the customer dispute is still pending.
• September 2024—“ Customers allege that between 2012 and 2023 Ceffalio managed their accounts in an unsuitable manner and misrepresented the total value of claimants' accounts.” The customer dispute settled for $300,000.00
• May 2024—“ During an unspecified time period, Claimants’ Financial Advisor (FA) made unsuitable investment recommendations causing Claimants’ accounts to underperform and Claimants to sustain substantial losses.” The customer dispute is still pending.
• May 2024—Discharged by LPL Financial LLC. “Solicited loan from customer without notice to and approval from Firm. Submitted trade corrections containing inaccurate basis for trade correction.”
• May 2024—“ Claimants allege representative forged their signatures on a line of credit agreement in March 2022 and directed the funds outside of Claimants’ control. The damage amount being requested is $3,530,379.93 and the customer dispute is still pending.
• July 2023—“ Complaint alleges customers did not understand their annuities and received misinformation that caused them to overspend from their accounts. On May 21, 2024, counsel for the client alleged that Mr. Ceffalio was “caught forging documents.” The customer dispute is still pending.
• January 2000—“ CLIENT ALLEGED MISMANAGEMENT OF ACCOUNT AND NEGLIGENCE.” The customer dispute was closed-no action.

 

For a copy of Richard Ceffalio’s SEC AdvisorInfo, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

Pursuant to FINRA Rule 3270, outside business activities in which Financial Advisors become involved must be disclosed.  FINRA Rule 3280 prohibits Financial Advisors from engaging in Private Securities Transactions, which are securities transactions that take place away from the employing brokerage firm.  The purpose of these rules is to ensure that Financial Advisors do not engage in selling away.  The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.